Money Talks

Money Talks

By Danny Reeves MBA & B2B CFO

There are a few ways to describe the impact of cash to business owners. Today’s business owners face tough decisions when dealing with issues in the supply chain, human resources, and rising prices. Optimizing cash flow is more important than ever in today’s economy. There are several ways in which a business owner can optimize their cash flow to its fullest potential. However, there is one important piece of information that every business owner should know on a daily basis the amount of available cash.

Always having a clear picture of the amount of cash available is essential to business owners- not simply checking the bank balance on an app or with online banking. Outstanding payables, automatic payments, expected receipts from credit cards, deposits, and EFTs all play a role in determining cash available. Projecting the cash needs of the day, week, or month will assist the business owner in ensuring the continued success of the business by identifying in advance challenges the business faces with meeting payroll, covering bank/investor obligations, vendor payables, etc.

Cash is the lifeblood of the business and business owners should be sure to treat it as such.”

Forecasting cash flow can be as simple or as complex as one wishes to make it. There are many apps and platforms available to the owner (most often for a fee). Many will sync with QuickBooks, including CashFlowTool, LivePlan, and Cash Flow Frog. I have also been successful with simple Excel spreadsheets. The key is to embrace a solution that will be easy to complete and quick to finish.

Twenty minutes a day spent reviewing cash flow position and needs will assure that the business owner has an understanding of the ebbs and flows of the business. Maintaining the discipline of this exercise is crucial. Cash is the lifeblood of the business and business owners should be sure to treat it as such.

Phone: (719) 660-0230

Website: https://www.b2bcfo.com/dannyreeves

Member: AICPA – License: CPA since 2005 Core Strengths

• Due Diligence

• Improve Business Processes

• Improve Cash Flow

• Grow Profitability

• Increase Company Value

• Plan Strategically, Legacy Planning, Prepare to Sell Business

• And much more…

Danny Reeves, MBA & B2B CFO